- Crisis In Indian Banking Leads to Work Pressure and Driving Employees To Despair, Commit Extreme Steps
- Toxic work culture on the rise in banks
- 5DaysBanking: Bankers Urgently Demand 2 Days Off Per Week
- Banks see over 15% growth in new credit card addition: RBI data
- Banks Transfer ₹37,176 Crore to RBI’s Depositor Education and Awareness Fund in Last 3 Years
- Calls for Bankers’ Safety Amplified After Video of SBI Branch Manager Attack Goes Viral
- Nainital Bank Faces Privatisation Move Amid Staff Protests
- Whistleblowers Expose Nexus Operating from Three Banks
- Preserving RRBs: AIRRBEA Defends Rural Banking Against AIBOC-AIBEA Merger Proposals
- Union Bank of India’s new directive for weekend work at Retail Loan Points (RLPs) has sparked outrage among bankers
Operational Crisis Strikes Utkal Grameen Bank Amid Sub Staff Termination
Utkal Grameen Bank in Odisha faces an operational crisis post subordinate staff termination, impacting branch functionality amidst broader success in RRBs.
Author: Saurav Kumar
Published: February 9, 2024
Utkal Grameen Bank, a prominent Regional Rural Bank (RRB) in Odisha, faces a significant operational crisis following the abrupt termination of its subordinate staff members.
Utkal Grameen Bank operates in 17 districts of Western and Southern Odisha, alongside Odisha Grameen Bank, another RRB, serving as a vital financial institution in the region.
Crippled Operations
The absence of sub staff has led to a severe disruption in branch operations, with the burden of responsibilities falling entirely on branch managers and clerks. Officers and employees are now tasked with managing all aspects of branch operations.
A former employee of Utkal Grameen Bank told Kanal, “sub staff served as the primary point of contact for rural customers, bridging the gap between customers and the bank. Their absence has disrupted essential customer-bank interactions.”
According to the employee, tasks previously handled by sub staff, including customer interaction, sanitation, and some paperwork, now fall on branch managers and clerks.
Each branch typically operates with a 1:1:1 ratio, comprising one branch manager, one clerk, and one temporary staff member. The removal of temporary staff has created a significant staffing challenge for the bank.
Support for Subordinate Staff
A member of the Workmen Association in Utkal Bank on the condition of not being named said, association has pledged full support to the terminated sub staff, advocating for their cause amid the ongoing crisis.
An anonymous source from the bank disclosed that the terminated sub staff had demanded job regularisation from the bank’s Chairman, threatening to strike if their demands were not met. In response, the Chairman issued termination orders on February 3, 2024, exacerbating the operational crisis.
RRBs Success Saga
Amidst the challenges faced by Utkal Grameen Bank in Odisha, Regional Rural Banks (RRBs) have showcased remarkable success in FY 2022-23.
RRBs achieved historic milestones, recording a consolidated net profit of Rs. 4,974 crore, the highest ever. Additionally, the consolidated Capital to Risk Weighted Assets Ratio (CRAR) reached an unprecedented 13.43% as of March 31, 2023. Notably, the Gross Non-Performing Assets (GNPA) stood at 7.28%, the lowest in seven years, reflecting enhanced asset quality. Moreover, the credit expansion resulted in a consolidated CD ratio surge to 67.50%, marking a 15-year high.
Existing Challenges in RRBs
Despite the success, Aryavart Bank (an RRB in Uttar Pradesh) garnered attention due to bankers compelled to work weekends. Moreover, RRBs confront a critical staffing shortage with 30,000 vacancies, urging urgent action with urgent calls for recruitment and comprehensive reforms have been made by the All India Regional Rural Bank Employees Association (AIRRBEA).